So Many Mortgage Choices: Which Is Best For You?

“When you’re planning out your purchase, there’s a lot of good research available online. Mortgage calculators, expert insight, and plug-and-play mortgage calculators can help you do your legwork; and there’s no shortage of opinions on the state of today’s housing. Take a look at today’s real mortgage rates now.”

U.S. Housing : Homebuyer's guide to buying a home and picking a suitable mortgage

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The U.S. housing market is strong, and gaining momentum. Home sales are rising, home prices are up, and builders are as confident as they’ve been all decade.

Low mortgage rates are helping, too.

Conventional mortgage rates have hovered near 4% since October of last year, and FHA mortgage rates and VA mortgage rates register even lower. Even better, mortgage lenders are approving far more applications than they’re denying.

If you’re among the many people who plan to purchase a home this year or next, then, you’ll want to make sure you understand the process of it all.

Understanding the process of buying a home can help you save money on your home, and save money on your mortgage, too.

All you have to do is “follow the steps”.

Click to see today’s rates (Jan 4th, 2016).


For today’s home buyers and households looking to refinance, there are multiple types of home loans available. A mortgage lender can offer you guidance, but it will be your responsibility to choose the most suitable mortgage program for your long- and short-term needs.

The first area in which to focus is “loan size”; how much money you’ll want to borrow.

Mortgage calculators are available online and some will provide some insight into how much you should be borrowing.

It’s a good idea to know how much you want to spend each month, or how much you want to put down as a downpayment (in dollars) before getting started. You don’t need both figures here — just one of them.

Once you know your maximum monthly payment or downpayment expectation, you can often work backwards in a mortgage calculator to determine “how much home you can afford”.

Many mortgage calculators will do this math for you.

Note, though, that a mortgage calculator’s “maximum loan size formula” won’t tell you how much you should borrow from a bank — instead, it will tell you how much you can borrow from a bank.

Only you know how much you’re comfortable spending each month or putting down as a downpayment. That’s why it’s important to know your financial situation, so you can choose a mortgage loan size that works best for you.

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